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One of the most concerning aspects of the Theranos investment has been the total lack of due diligence in this process. Putting aside the technology for a mome
by dpandya 9y ago
One of the most concerning aspects of the Theranos investment has been the total lack of due diligence in this process.
Putting aside the technology for a moment (it could be considered difficult to evaluate for most investors), due diligence failed on multiple counts. For example, Holmes told potential investors they had over $100 million in revenue when, in reality, they had close to $100,000 in revenue. That's a bit like trying to tell someone a SMB SaaS business with ~100 customers has the same traction as, say, Algolia. Hard to understand how this passed through the filters.
- Thriptic 9y agoThere is a far simpler way to look at this, and that is to say that this is why we have peer review in science. If a scientist won't release data or methods, there is a 99% chance they are bullshitting their claims. Theranos's product happened to be adjacent to my research space, so I was already highly skeptical when I heard the initial product claims. When I heard they weren't releasing data however, I strongly suspected they were bullshit. Many years later, sure enough..